Management against the labor shortage

It has been a long time since Brazilian companies faced so intensely this "wound" that threatens to undermine competitiveness, innovation and sustainability: the growing and evident shortage of qualified professionals in various sectors, as well as the difficulty of retaining them after hiring. A phenomenon that is proving to be both local and global.

In Brazil, a recent survey by the National Confederation of Commerce (CNC), which used data from the Central Bank (BC), found that 40% of the 231 main occupations showed, in June of this year, strong signs of labor shortage. And this was already hurting businesses at a record level previously seen only in December 2021.

The problem is growing at a gallop: in June 2014, this shortage was below 15%. It nearly tripled in a decade and was aggravated by the recent 0.7-point drop in the unemployment rate, now at 6.8%, according to the Brazilian Institute of Geography and Statistics (IBGE). In other words, most qualified people are employed. And candidates for replacements are not easy to find.

The world is no different: 77% of companies struggle to find professionals, the highest percentage in the last 17 years, reports ManpowerGroup's Global Talent Shortage 2023. And a deficit of 85 million specialists in data science, cybersecurity and artificial intelligence is already expected by 2030. This could cause annual losses of up to US$ 8.5 trillion, according to the World Economic Forum.

Some clues about the causes of the phenomenon are already known: the growth of informal work, digital entrepreneurship and certain types of self-employment (such as ride-hailing drivers and delivery workers), trends that "steal" workers from more traditional activities.

The scenario becomes even more complicated when one realizes that the market is now receiving “generation z”. They are the “digital natives”, born between the second half of the 1990s and the early 2010s, also called zoomers or centennials. Their profiles are well known and combine interesting but challenging characteristics.

They are hyperconnected, creative and authentic. They adapt to multitasking and seek entrepreneurship. They highly value autonomy, diversity, mobility and social inclusion. They are part of the “anxious generation”, supercharged by social media and by hybrid and remote work, with difficulty forming bonds at work as well. Issues that are still challenges for more traditional companies.

And, once again, the way one manages can be decisive. Management needs to be attentive to this challenge and prepare the ground so that companies can truly train, develop, attract and retain professionals. In this scenario, the lean way stands out, because its sociotechnical approach values communication and human relationships. When well applied, it is capable of breaking down barriers, bringing people together and developing them, creating an environment favorable to attracting and keeping professionals.

Inspiring purposes

The first step is simple but essential: define clear purposes, centered on creating and delivering value to the customer in all of the company's actions. More than that, these purposes need to be implemented, communicated and deployed so that everyone understands exactly how their efforts are aligned in favor of the customer and society, and not just for the company's profit. It is important that people truly feel that their contributions have a real impact on the whole.

Connected to this, management needs to provide conditions for individuals to take a critical look at and improve, day after day, the activities they  perform. They need to feel that they are not wasting time and energy on unnecessary activities and that they are able to produce more and better. This reinforces the pleasure, pride and meaning of the activities, boosting self-esteem.

Management must also create an environment of full psychological safety. Where people feel truly included. This means not being afraid of punishment, retaliation or harassment. And feeling free to, in a responsible and guided way, ask questions, seek answers, learn and teach. Even to make mistakes and challenge established standards. Always with the aim of generating collective learning, solving problems collaboratively, and fostering innovation and value creation.

“Z” leaders

For this, it is essential to develop complete and well-prepared leaders. Leaders who are partners, who engage others and who are always present at the gemba, listening actively, challenging and offering support. Like their team members, they must teach and learn continuously, encouraging autonomous teamwork. It is important that they create the conditions for success, helping people reach their full potential.

And, since the system is “sociotechnical” in nature, the technical part, when well structured, can also help develop and retain professionals. For example, by mapping value streams, identifying and eliminating bottlenecks and rework, or by establishing clear and widely shared standards and routines. In addition, encouraging the use of scientific methods to expose and solve problems, such as A3 and PDCA, is essential. Without forgetting the importance of Daily Management (DM), which strengthens unity and the daily commitment to continuous improvement.

All these social and technical dimensions of the lean system certainly make people more empathetic and create solid bonds and longer-lasting relationships. And they can trigger virtuous circles of improvement in communication and in the reduction of anxiety. As well as improving workers' experience and day-to-day life. As a result, individuals become more engaged, do not think about changing companies, but, on the contrary, want to grow along with the company. This strengthens organizations on different fronts. For example, in the pursuit of environmental protection, in deepening solutions to social problems and in improving corporate governance.

Labor shortage is an increasingly evident issue in the corporate landscape. Although its solution requires structural advances in areas such as politics, the economy and education, companies have the opportunity to make a difference by reviewing their management assumptions and practices. By becoming more attractive and welcoming, they can create an environment that favors professional fulfillment and the development of new generations, contributing to long-term sustainability and competitiveness.